Though they sell errors and omission policies to financially protect business professionals every day, e and o insurance for insurance agents is just as smart. Good errors and omission policy protects agents financially, covering legal costs and paying judgments and settlements when a mistake on the job leads to a lawsuit.
Agents know to look out for an E&O policy with claims-made coverage. This insurance product only covers professionals when the policy is active. In other words, if a claimant files claim after the policy falls inactive, the agent will not receive benefits. This is important for any business professional, as a building contractor, for example, who may be named in a lawsuit years after performing a service.
Coverage Limits and Deductibles
Insurance agents will tell you to review your coverage limit before you purchase a policy. That’s the maximum monetary amount paid out to a claim. You want that amount to match the size of your business. If not, you could put your business in jeopardy or have to come up with the difference on your own. The right policy will also cover court costs, legal fees and more.
You might also ask about deductibles and whether you are fit for a high deductible, which will lower your premium or low deductible. It is the same question agents ask when shopping for e and o insurance for insurance agents.